Lagatar24 Desk
London: India and the United Kingdom have signed a landmark Free Trade Agreement (FTA) that is expected to double bilateral trade by 2030, with a significant boost for Indian agriculture and exports. The deal, called the Comprehensive Economic and Trade Agreement, was signed by Commerce Minister Piyush Goyal and British Trade Minister Jonathan Reynolds in the presence of Prime Ministers Narendra Modi and Keir Starmer.
A New Era for Indian Agriculture
Prime Minister Modi highlighted the benefits for Indian farmers, calling the pact a “new gateway” to global markets. Under the agreement, Indian agricultural and processed food products — including turmeric, cardamom, pepper, pickles, mango pulp, and pulses — will receive duty-free access to British markets. Officials say these concessions will offer Indian farmers better margins and wider reach compared to exporters from European nations.
India has protected key domestic interests by excluding tariff relaxations on sensitive products such as dairy, apples, oats, and edible oils. The government assured that no compromise was made on protecting the livelihood of Indian farmers.
Trade Expansion Across Sectors
The FTA will also boost India’s fisheries sector, particularly in coastal states like Andhra Pradesh, Kerala, Odisha, and Tamil Nadu. Exports such as shrimp, tuna, and fishmeal — previously taxed up to 8.5% — will now enter the UK duty-free. Additionally, Indian exports of leather, textiles, and footwear are expected to rise sharply.
On the other hand, UK exports such as whiskey, cars, and medical devices will become cheaper in India, thanks to lower import duties. Both nations believe this reciprocal trade flow will benefit consumers and businesses alike.
Leaders Emphasize Strategic and Humanitarian Ties
Prime Minister Modi praised the pact’s potential to reduce the cost of doing business and boost confidence among investors. “This agreement strengthens not just our economic partnership, but also contributes to global stability and prosperity,” he said.
Modi also acknowledged the UK’s solidarity following the Pahalgam terror attack and extended condolences over the recent UK national casualties in the Ahmedabad plane crash.
UK Prime Minister Keir Starmer called the deal “historic,” stating it would raise wages and living standards in both nations. He added that British whiskey producers and Indian exporters alike will benefit from reduced prices and wider access.
After concluding his UK visit, Prime Minister Modi will head to the Maldives, signaling a possible thaw in ties following recent diplomatic strains with President Mohamed Muizzu’s government.
